Who is My Main Competitor? Measuring Airline Pairwise Competitive Intensity Based on Route Supply Strategies - Archive ouverte HAL
Pré-Publication, Document De Travail Année : 2024

Who is My Main Competitor? Measuring Airline Pairwise Competitive Intensity Based on Route Supply Strategies

Résumé

Classical approaches to the study of airline competition involve either assessing market concentration or studying rivalry dynamics, through adaptive responses to competition. However, these methods often lack precision at the individual level or reach the limits of computational complexity. To leverage the advantages of both methods, we discuss various measures of competitive intensity between two airlines using bivariate statistical analysis, based on their flight supply strategies across European routes. First, four pairwise symmetric indices are presented and compared. The weighted Jaccard index is identified as the best measure and used to examine the European domestic market in the first and third quarters of 2023. The results show the consistency of the index with real competitive situations. In addition, an asymmetric version of the weighted Jaccard index is introduced for further research and discussion.

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Dates et versions

hal-04728168 , version 1 (09-10-2024)

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  • HAL Id : hal-04728168 , version 1

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Qian Liu, Paul Rochet, Chantal Roucolle. Who is My Main Competitor? Measuring Airline Pairwise Competitive Intensity Based on Route Supply Strategies. 2024. ⟨hal-04728168⟩
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